84 Pakistani textile mills blacklisted by ICA for defaulting on cotton deals

The International Cotton Association (ICA) has placed 84 Pakistani textile mills on its defaulters’ list, barring them from trading in global cotton markets. 

The association revealed that these mills failed to honor their cotton purchase agreements, prompting a directive to ICA members to refrain from entering into any deals with them.

The defaulting mills are primarily based in Karachi and Lahore, with additional units in Faisalabad, Multan, Hyderabad, Kasur, and Nankana Sahib. 

Industry sources disclosed that some of these mills have either closed or partially ceased operations.

Prominent defaulters include Acro Spinning & Weaving Mills Ltd, Crescent Fibres Ltd, Din Industries Ltd, Mausummery Lawn, and Gulistan Spinning Mills Ltd. 

Several owners of these mills are associated with key industry bodies like the All Pakistan Textile Mills Association (APTMA) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and have previously benefited from government subsidies and facilities.

The blacklisted mills are now ineligible to purchase cotton from international markets, severely impacting their operations. The ICA’s decision comes at a critical time for Pakistan’s textile sector, which is already grappling with operational challenges and rising costs. 

Industry observers fear that the blacklist could exacerbate the financial difficulties of the affected mills, while raising concerns about the credibility of Pakistan’s textile industry in global markets.